London-based Aviva to sell French operations to Aéma Groupe for $3.9 billion
LONDON (UK) – Aviva has consented to sell its French operations for 3.2 billion euros ($3.89 billion) to newly created insurer Aéma Groupe, which is based in France, said the firm on Tuesday.
London-based Aviva, which is led by Amanda Blanc, said that the sale would enhance excess capital by 2.1 billion pounds ($2.95 billion) and centre cash of around 2.8 billion pounds.
Aéma Groupe was formed in January through The merger of Aésio mutuelle and Macif Group led to the formation of Aema Groupe, which has 8 million customers.
“The transaction will increase Aviva’s financialstrength, remove significant volatility and bring real focus to the Group,” said Chief Executive Officer Amanda Blanc.
Aviva is contemplating supporting debt reduction by using the proceeds of the sale and also use it to invest for long-term growth and return excess capital to shareholders.
The sale is key to the turnaround plan of Blanc aimed at shifting the focus of the firm to core operations in Britain, Canada and Ireland after prolonged share price weakness has irked investors. It is also looking to sell its Polish Operations.